DANIEL LEBLANC
OTTAWA — From Thursday's Globe and Mail Published on Thursday, Jan. 04, 2007 1:19AM EST Last updated on Friday, Apr. 03, 2009 9:57AM EDT
Opposition parties will start probing $14-billion in “de facto sole-sourced” military contracts next month, arguing the interests of taxpayers are at risk as the Canadian Forces acquire new planes and helicopters with minimal competitions.
The defence committee of the House of Commons will start its examination in February, after it finishes a study into the current mission in Afghanistan. As part of that investigation, MPs are set to travel to the Canadian base in Kandahar.
Sources said the MPs are ready to leave in the near future, but they have been jokingly warned that they “will be shot” if they reveal details of their travel plans, because of security concerns.
The committee's decision to investigate procurement issues was prompted by Ottawa's decision to buy $11-billion worth of aircraft last year. In each of the cases then, only the winning bids were considered as they were the only products that met the specifications of the Canadian Forces.
“We can't have the Department of National Defence making up grocery lists and then letting us pick up the tab,” Bloc Québécois MP Claude Bachand said in an interview yesterday.
Mr. Bachand said the committee's resolve was increased by a report in yesterday's Globe and Mail, which said that once again only one aircraft met the current requirements for a planned purchase of 15 to 19 search-and-rescue planes.
The committee will examine allegations that the Canadian Forces are deliberately establishing requirements that exclude competitors in favour of their preferred kit.
“We know exactly which companies they want to hire,” he said.
New Democratic MP Dawn Black said the Conservative government is rightly attempting to cut back on the time it takes to acquire military equipment, but she said the process has to remain competitive.
DND is negotiating the contract with Boeing Co. to acquire C-17 cargo jets and Chinook heavy-lift helicopters at a total cost of $6-billion, and with Lockheed Martin for the purchase of C-130J transport planes at a cost of $5-billion.
DND is also planning to acquire new search-and-rescue aircraft at a cost of $3-billion, but Ms. Black denounced the fact that only one aircraft — the Italian-built Spartan C-27J — seems to be in the running.
“Perhaps it's quicker, but it certainly isn't an open bidding process,” Ms. Black said.
Liberal MP Ujjal Dosanjh said the current process is flawed, with too much power in the hands of the military and a lack of civilian oversight.
“These are essentially de facto sole-sourced contracts, masquerading as competitions,” he said.
In relation to the search-and-rescue competition, rival bidders argue that the specs have been adapted to suit the needs of the Spartan C-27J, which is bigger and faster than its competitors.
The rivals argue the Spartan might be unable to slow down to the ideal search-and-rescue speed of 130 knots.
In the first three draft versions of the requirements for the search-and-rescue aircraft, the documents stated: “Search speeds . . . typically vary between 110 to 130 knots for visual searches.”
However, the last version of the draft requirements, dated last July, has been changed to state that search speeds “typically vary between 110 to 140 knots” — a range that allegedly better suits the capabilities of the Spartan C-27J.
Retired lieutenant-general George Macdonald, a former vice-chief of the defence staff who is a C-27J lobbyist, said the requirements aim to provide the same search-and-rescue capabilities as currently delivered by the Hercules C-130.
“The C-130 is really the benchmark here,” he said. “The Canadian Forces feel the requirements for the future for search-and-rescue should be the same or better as they were in the past.”
He added that the government can still get the best price possible even if there is only one company in the running. For example, he said, the government can force companies to provide the price at which they sold their aircraft to other militaries.
Mr. Macdonald said the Spartan has already been sold to Italy, Greece, Bulgaria, Romania and Lithuania. Each Spartan costs about $40-million.
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